Car Loan Calculator Australia 2026: Repayments, Fees and Balloon

A $35,000 car loan at 7.5% over five years costs about $701 a month and $7,080 in interest. Stretch it to seven years and the repayment falls to $537 a month, but the interest rises to $10,095. Use the calculator below to test your own price, deposit, rate, term, fees and balloon payment, and see the real cost including fees as a comparison-style rate.

Car loan calculator

Enter your details. The calculator works in monthly steps, assumes a fixed rate and shows the total you will pay for the car, including your deposit, fees and any balloon.

How car loan repayments work

A car loan is usually a fixed-rate loan repaid in equal monthly instalments over one to seven years. Each repayment covers the interest on the balance plus a slice of the principal. Most lenders also charge an establishment fee, often $250 to $499 in the lender table we checked, and some add a monthly account fee of around $8 to $10. Fees are why the comparison rate is higher than the headline rate, and the comparison rate is based on a standard $30,000 loan over five years.

What a $35,000 car loan costs

These examples use a 7.5% fixed rate and no fees:

How much the rate matters: on the same $35,000 over five years, the repayment is $685 a month at 6.5%, $701 at 7.5%, $718 at 8.5% and $735 at 9.5%.

Average car loan interest rates in Australia

Rates have risen with the RBA cash rate, which reached 4.60% on 29 September 2026. Fixed-rate borrowers are protected from further rises on existing loans, and most car loans are fixed. Our interest rate predictions guide covers where rates may go next.

Secured or unsecured?

A secured car loan uses the car as security, which usually gives a lower rate. An unsecured personal loan has no security and usually costs more, often starting above 8% a year, but the lender does not hold a claim over the car. Older cars and private sales may be refused for secured finance or carry higher rates, so check the lender’s age limits before you shop. Green loans for electric and hybrid cars can start lower, from around 5.5% with some lenders, so see our guide to cheap electric cars if you are considering one.

What is a balloon payment?

A balloon payment is a lump sum you owe at the end of the loan. It lowers your monthly repayment because you only repay part of the principal during the term. On a $35,000 loan at 7.5% over five years, a 30% balloon of $10,500 drops the repayment from $701 to about $557 a month, but the total interest rises from $7,080 to about $8,893, and you still owe $10,500 at the end. If you cannot pay it, you will need to refinance, sell the car or trade it in. The balloon box in the calculator shows the effect.

Novated lease versus a car loan

A novated lease is an arrangement between you, your employer and a finance company, where repayments come from your pre-tax salary. It can reduce tax in some cases, especially with electric cars, but it comes with fees and a residual payment at the end. Compare it carefully with a standard loan, and read our guide to novated lease versus buying a car.

Costs beyond the repayment

• Insurance. Comprehensive cover is often required by the lender. See our car insurance cost guide.
• Registration and CTP. Both are yearly costs, and CTP varies a lot by state. See car registration costs and CTP and green slip insurance.
• Stamp duty. Buying a car triggers vehicle stamp duty in most states. Use our stamp duty calculator.
• Fuel, servicing and tyres. These can add several thousand dollars a year.
• Checks before you buy. For used cars, run a REVS check to see whether there is money owing on the car, and read our used car buying guide.

How to get a lower car loan rate

• Compare the comparison rate. A low rate with high fees can cost more than a slightly higher rate with no fees.
• Improve your credit file. Pay bills on time, reduce card limits and avoid multiple loan applications in a short period.
• Save a bigger deposit. A smaller loan relative to the car’s value is lower risk for the lender.
• Get pre-approval. Knowing your rate lets you negotiate the car price like a cash buyer, and avoid dealer finance you have not compared.
• Choose a shorter term. It raises the repayment but cuts total interest. A seven year loan on a car that loses value quickly can leave you owing more than it is worth.
• Check early repayment fees. Some lenders charge to pay a fixed loan off early, so look at this before you sign.

Common mistakes

• Focusing on the monthly repayment and ignoring the total cost.
• Taking a long term and a balloon on a car that depreciates quickly.
• Accepting dealer finance without comparing at least two other lenders.
• Forgetting to budget for insurance, registration and servicing.
• Not reading fees, such as establishment, monthly and early exit fees.

If you are on a temporary visa

Some lenders finance cars for temporary visa holders, but policies vary. Lenders may ask for a minimum amount of time left on your visa, proof of income and a larger deposit. If your visa will end before the loan does, check what the lender requires. Our student car ownership costs guide shows the full running costs.

Sources and further reading

• Savvy, average car loan interest rate in Australia
• Finder, compare car loans
• Mozo, car loan interest rates
• MoneySmart (ASIC), car loans
• Reserve Bank of Australia, cash rate target

Last checked 21 October 2026. Rates, fees and lender rules change often, so confirm current figures with the lender. The calculator gives estimates with a constant rate and is not credit or financial advice. The effective rate shown is a comparison-style figure, not the official comparison rate lenders must publish.

Related guides

More on cars and money: novated lease versus buying, buying a used car, mortgage repayment calculator and car insurance cost.

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